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What is the net present value of this investment

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Question - Saturn Ltd. wants to automate one of its production processes. The new equipment will cost $180,000. In addition, Saturn will incur installation and testing costs of $5,000 and $8,500 respectively. The expected life of the equipment is 8 years and the salvage value of the equipment is estimated at $18,000. The annual cash savings are estimated at $32,000. The company's cost of capital is 14%. Ignore income taxes. What is the net present value of this investment?

Reference no: EM133000423

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